Chip's Tips - Colored Volume Bars
Subject: Chip's Tips - Colored Volume Bars
From: Chip Anderson <chipamy@xxxxxxxxx>
Date: Tue, 3 Feb 1998 14:31:06 -0800 (PST)
Resent-Date: Tue, 3 Feb 1998 15:33:32 -0700
Creating Charts with Colored Volume Bars
MetaStock already had built-in support for displaying different colored price plots depending on whether the stock had up or down day (right-click the price plot, choose "Properties", adjust the "Colors" settings). But what about coloring the volume bars based on daily up/down performance?
Many people like to color both price and volume bars in order to help spot trends and divergences. Unfortunately, right-clicking on a standard volume plot and chosing "Properties" reveals that MetaStock has no built-in support for this. Fortunately, with a couple of simple custom indicators you can simulate this kind of plot fairly easily.
First, we need to create two new custom indicators - one called "Up Volume" the other called "Down Volume". Here are the steps:
1.) Use the "Tools/Indicator Builder" command, then press the "New" button.
2.) Enter "Up Volume" in the Name field.
3.) Carefully enter "If(C>Ref(C,-1),V,0)" in the Formula field.
If today's close ("C") is more than yesterday's close ("Ref(C,-1)") then it's an Up day and we set the value of the indicator equal to today's volume ("V"), otherwise we set the indicator to zero.
4.) Press OK to create the indicator, then press the "New" button again.
5.) Enter "Down Volume" in the Name field.
6.) Carefully enter "If(C<=Ref(C,-1),V,0)" in the Formula field and press OK.
7.) We're done, so you can press "Close" to return to your chart.
(Note: You only need to do the above steps once.)
Now, we'll plot these two new indicators as different colored overlapping histograms at the bottom of our chart. Here's how:
1.) Create a new chart for any security you have available. Make sure you have Volume data for the security you chose.
2.) (Optional) Right click on the price plot and choose "Properites." Choose "Bars (Open, High, Low, Close)" and pick Black for the Up color and Red for the Down color then click OK. You might want to remove any other indicators or line studies also.
3.) Drag the "Up Volume" indicator from the Quick List down to the bottom of the chart and drop it on the X-Axis so it creates a new inner window.
4.) Right click on the new indicator line and choose "Properties." Now change the Color to Black (or whatever you prefer for Up days) and select the histogram style.
5.) Now drag the "Down Volume" indicator from the Quick List and drop it into the same inner window that the Up Volume is in. Choose "Merge with scale on Right" if asked.
6.) Carefully right click on the new line and choose "Properties." Change the Color to Red (or whatever) and select the histogram style.
7.) If the vertical scale seems messed up, try right clicking on it and set the Minimum value to zero.
If you like this kind of chart, you should save it as a Template using the "File/Save As..." command.
Thanks to Richard Estes for suggesting this tip on a Silicon Investor thread.
Let me know if you have any comments or questions.
Volume - Advance / Decline in 2 Colors
;If(V> Ref(V,-1 ),V,0)
;If(V< Ref(V,-1 ),V,0)